Interpretation

2.—(1) In these Regulations unless the context otherwise requires—

• “established rate” means—

  (a)

  on the coming into force of these Regulations, 7 per cent. per annum; and

  (b)

  in relation to any day after the first reference day after the coming into force of these Regulations, the reference rate found on the immediately preceding reference day;

• “operative day” means the sixth day of each month;

• “reference day” means the twelfth working day before the next operative day;

• “section 197” means section 197 of the Finance Act 1996;

• the “relevant enactments” are those referred to in regulations 4(1) and 5(1) below;

• “working day” means any day other than a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882(1).

(2) In these Regulations the reference rate found on a reference day is the percentage per annum found by averaging the base lending rates at close of business on that day of—

(a) Bank of Scotland,

(b) Barclays Bank p.l.c.,

(c) Lloyds Bank p.l.c.,

(d) Midland Bank p.l.c.,

(e) National Westminster Bank p.l.c., and

(f) The Royal Bank of Scotland p.l.c.,

and, if the result is not a whole number, rounding the result to the nearest such number, with any result midway between two whole numbers rounded down.

(1)

1882 c. 61; section 92 was amended by sections 3(1) and (3) and 4(4) of the Banking and Finance Dealings Act 1971 (c. 80).